Fiat Needs Chrysler More Than Ever

Italian Auto Maker's Warning It Could Curb Ties Doesn't Hold Up

By

Gilles Castonguay

Sept. 24, 2013 4:47 p.m. ET

Fiat SpA is making noise that it could scale back its alliance with Chrysler Group LLC if it can't get full control of the U.S. auto maker. But given how critical the partnership has become to the Italian car maker, many consider the warning to be hollow.

The Turin, Italy, company has come to depend heavily on Chrysler, as Fiat's European business hemorrhages hundreds of millions of euros a year amid a severe slump in demand for cars in the region, say analysts. Fiat's plan to take full control of Chrysler, tap its cash,...